Chinese titanium producers expect boost from new iPhone
13/09/2023 12:46
BEIJING, Sept 13 (Reuters) - China's titanium producers
said on Wednesday they expect stronger demand for the
lightweight metal after the launch of a new model of Apple's
iPhone with a titanium shell.
Production of the new Apple AAPL.O iPhone 15 Pro, unveiled
on Tuesday, will lift demand for titanium by between 3% and 4%
this year, or by as much as 10,000 tons, said Zhao Wei,
information director at the Titanium Zirconium Hafnium branch of
the China Nonferrous Metals Industry Association (CNIA).
China accounts for more than 60% of the 240,000 metric tons
of titanium and titanium alloys produced globally each year,
according to the CNIA.
Apple's use of titanium, rather than a stainless steel
shell, could trigger additional demand too, with other companies
likely to follow its lead, Zhao and other market participants
said.
"Following Apple's lead, there will be other brands starting
to use titanium alloys in their products, creating a bright spot
for demand growth of the metal," said Zhao.
China is also the biggest producer of iPhones, with global
shipments made by Foxconn from a huge factory in central China.
About 40% of titanium is currently used in the chemicals
sector and more than 30% in aerospace. The electronics sector
accounts for less than 10% of demand, estimated Zhao, but has
strong potential for growth.
Titanium has already been used in small volumes in Apple
watches, but a contract to supply production of the new iPhone
model is significantly larger than before, said a supplier who
declined to be identified citing confidentiality.
A consumer product "monster" such as the iPhone would help
bring wider adoption of titanium in new industries, replacing
materials like stainless steel, he added.
The titanium shell on the new iPhone is made with an alloy
known as Grade 5 Titanium that also contains small amounts of
aluminium and vanadium, according to three Chinese titanium
producers.
The alloy is known for excellent corrosion resistance, light
weight and strength but cannot be produced by all suppliers,
said Zhao.
"There's a technical barrier to produce titanium alloys and
international enterprises such as Apple require high standards.
So we won't see the market crowded with newcomers," he said.
(Reporting by Ningwei Qin, Amy Lv, Siyi Liu and Dominique
Patton; Editing by Sharon Singleton)
((dominique.patton@thomsonreuters.com;))